The global mining giant Rio Tinto signed an MoU with India's public sector mining giant NMDC. The two companies will co-operate in investigating mutually advantageous potential investment opportunities primarily for iron ore both in India and abroad. Opportunities in other minerals will also be booked for under the MoU. The MoU was signed on the 18th of August in New Delhi. The companies will make joint effort to acquire mining properties in India and abroad to explore, develop and exploit through formation of a joint venture company. Special emphasis will be given to develop low grade iron ore projects. The NMDC CMD, Rana Som told that the joint venture company would not restrict itself to iron ore only. "The existing properties of NMDC will not be part of the eventual JV", said Som.
NMDC's iron ore mines in Chattisgarh and Karnataka produce about 30 million tonnes a year. The debt free Navratna Company is in the final stages of plans for setting up a 4 million tonne greenfield steel plant at an investment of Rs 16,000 crore in the state of Chhattisgarh. It is also busy scouting for mineral resources abroad. The MoU with Rio Tinto will help the company in its overseas plans. In fact even Rio Tinto will gain from the NMDC presence for scouting resources in many African countries where India is more acceptable socio-politically than the companies from the West who are viewed as exploiters. The MoU is a win-win one for both the companies. The NMDC CMD believes firmly that there are options of mining with minimum damage to the ecology. In India most merchant miners are essentially mine diggers. They do not even make an effort to use modern mining technique to dig underground and maintain the ecological balance at the same time. Rio Tinto's India chief Kim Senapati claimed, "Wherever Rio Tinto has gone the company has contributed to the sustainable development of the area. When the locals will see the processes involved in mining they will never raise any objection."
But why did NMDC offer the benefit of the JV in India? Can it be denied that in I(ndia at least NMDC does not need any partner? Som aggress but cites the need for accessing resources from abroad, "NMDC saw a mineral property in Australia which is connected by private railway of another mineral developer. Unless I have some ally like Rio Tinto how can I evacuate the resource to the nearest port?"
NMDC's iron ore mines in Chattisgarh and Karnataka produce about 30 million tonnes a year. The debt free Navratna Company is in the final stages of plans for setting up a 4 million tonne greenfield steel plant at an investment of Rs 16,000 crore in the state of Chhattisgarh. It is also busy scouting for mineral resources abroad. The MoU with Rio Tinto will help the company in its overseas plans. In fact even Rio Tinto will gain from the NMDC presence for scouting resources in many African countries where India is more acceptable socio-politically than the companies from the West who are viewed as exploiters. The MoU is a win-win one for both the companies. The NMDC CMD believes firmly that there are options of mining with minimum damage to the ecology. In India most merchant miners are essentially mine diggers. They do not even make an effort to use modern mining technique to dig underground and maintain the ecological balance at the same time. Rio Tinto's India chief Kim Senapati claimed, "Wherever Rio Tinto has gone the company has contributed to the sustainable development of the area. When the locals will see the processes involved in mining they will never raise any objection."
But why did NMDC offer the benefit of the JV in India? Can it be denied that in I(ndia at least NMDC does not need any partner? Som aggress but cites the need for accessing resources from abroad, "NMDC saw a mineral property in Australia which is connected by private railway of another mineral developer. Unless I have some ally like Rio Tinto how can I evacuate the resource to the nearest port?"
Next Story
